Free Tax USA | Free Tax Filing Online

It is painless and free for you to file your federal income tax return. Plus you will enjoy all the benefits expensive tax software claims to have. This company provides online tax preparation, e-filing, and printing of your federal income return for free if you qualify. To qualify you will need to live in the following states:

Alabama, Maryland, New Mexico, South Carolina, Arizona, Idaho, Massachusetts, New York, Utah, Arkansas, Illinois, Michigan, North Carolina, California, Indiana, Minnesota, Virginia, Colorado, Mississippi, Ohio, Connecticut, Kansas, Missouri, Oklahoma, Wisconsin, Kentucky, Oregon, Louisiana, Nebraska, Pennsylvania, Georgia, Maine, New Jersey

Unfortunately, filing taxes can be tedious, stressful ordeal that often leaves individuals exhausted and exasperated. Thankfully, filing taxes doesn't have to be so difficult; filing taxes online allows tax payers flexibility, free resources, and a hassle free, simpler way of filing taxes. Best of all, filing taxes online is free!

Online Filing Saves Time:
Federal tax filing online can save tax filers a ton of time. Unlike with traditional paper filing where an individual will have to enter calculations multiple times, online tax filing allows users to save those calculations. The days of having to re-enter information are in the past. Not only that, but tax filers can get the step done in one easy step; going to the post office to send the forms off isn't necessary as the information can be submitted online. Even better, tax filers will find that the online tax systems often automatically check for errors meaning that no one has to sit around spending hours double checking information.

Perhaps the best time saving attribute of filing taxes online shows up in the tax return. Instead of having to wait months for a return, individuals who file taxes online will often see the return deposited into their bank account as soon as two weeks after filing taxes.

Online Filing Saves Money:
It almost seems too good to be true, but filing taxes online is completely free. With the extra assistance that comes with online filing, individuals will feel less of a need to visit a tax professional meaning that even more money can be saved.

Online Filing Reduces Stress:
For most people, filing taxes can be extremely stressful. The fear of running out of time or making a mistake can seem terrifying. Even worse, the thought of something going wrong in the mail delaying the delivery of important paperwork is present. When filing taxes online, an individual can immediately tell if the form has been submitted or not. Not only that, but unlike with snail mail, a confirmation is given that the IRS has received the information.

For most people, free tax filing is an excellent solution for filing taxes. Not only is it easier than traditional tax filing, it's faster and free; what is there to lose?

Free Tax USA will also file your state taxes for $9.95.

Remember, if you live in Alaska, Florida, Nevada, South Dakota, Texas, Washington, or Wyoming, you do not need to file a state tax return. Also, most residents of New Hampshire and Tennessee do not have to file a state income tax return.

Personal Exemption: No change. For the very first time, the standard exemption for 2010 will not be going up and will stay unchanged at $3,650, the same as it was in 2009.
Standard Deduction: No change, except for Head Of Household filers. The standard deduction for married couples filing jointly will remain unchanged at $11,400. For those filing as single, the standard deduction will remain at $5,700 as well. However, Head of Household filers will see a slight increase by $50 - from $8,350 (year 2009) to $8,400 (year 2010).
Overall Tax Bracket Thresholds: Will increase across the board for all tax filing statuses, albeit at a significantly lower amount compared to past tax year increases.
Annual Gift Tax Exclusion Amount: No change. For tax year 2010, the current gift tax exclusion limit of $13,000 will stay the same. Often overlooked by most taxpayers, the gift tax stipulates that gift givers must pay a special tax on gift amounts that exceed a certain amount per year.
Traditional and Roth IRA Contribution Limits: No change. Despite the fact that IRA and Roth IRA contribution limits did not rise in 2009 in response to strong inflationary pressures in 2009, there will still be no corresponding change in the maximum contribution limits to individual retirement accounts for 2010. The standard IRA contribution limit for 2010 will remain unchanged at $5,000. The catch up contribution limit for those 50 or older will remain at $6,000 as well.
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The following types of income are supported when using FreeTaxUSA.com:

* Wages and salaries (Form W-2)
* Unemployment compensation (Form 1099-G)
* Interest and dividend income (Form 1099-INT and Form 1099-DIV)
* Capital gain distributions (Form 1099-DIV)
* Sales of stocks and mutual funds (Form 1099-B)
* IRA and pension distributions (Form 1099-R)
* Social security benefits (Form 1099-SSA)
* Gambling income or losses (Form W-2G)
* Self-employment income (Form 1099-MISC and Schedule C)
* Rental real estate income (Schedule E)
* Royalty income (Schedule E)
* Partnership or S corporation income (Schedule K-1)
* Estate and trust income (Schedule K-1)
* Farm income (Schedule F)
* Self-employment taxes (Schedule SE)
* Alimony received
* Taxable state or local refunds (Form 1099-G)
* Scholarships and grants
* Unreported tip income (Form 4137)
* Sale of business property (Form 4797)
* Cancellation of debt income (Form 1099-C or Form 1099-A)
* Sale of home
* Tuition program distributions (Form 1099-Q)
* Original Issue Discount income (Form 1099-OID)
* Seller-financed loan interest income
* Household employee wages
* NOL carryover
* Capital loss carryover
* Jury duty fees
* Prizes and miscellaneous income
* Alaska Permanent Fund dividends

In the case you are looking for further tax filing resources or supplies, another great resource I highly recommend is http://taxprepresources.com/ . They have a wide variety of items for anybody looking to file or prepare taxes or tax returns. For instance, if you need tax forms and envelopes, Wilson Jones accounting supplies or tax software this is the perfect place to prepare yourself for the upcoming busy season. If you are in public accounting, you will especially love all the great resources the site provides.

The following deductions are supported with FreeTaxUSA.com:

* Education expenses (Form 1098-T)
* Home mortgage interest, points, and insurance (Form 1098)
* Student loan interest (Form 1098-E)
* IRA deduction
* Educator expenses
* Moving expenses (Form 3903)
* Alimony paid
* Medical expenses (Schedule A)
* State and local taxes (Schedule A)
* Real estate taxes (Schedule A)
* Personal property taxes (Schedule A)
* Cash contributions and most noncash contributions (Schedule A and Form 8283)
* Job expenses (Form 2106)
* Tax preparation fees (Schedule A)
* Investment expenses (Schedule A)
* Gambling losses (Schedule A)
* Casualty losses (Form 4684)
* Depreciation expense (Form 4562)
* Margin loan interest (Form 4952)
* Penalty paid on early withdrawal of savings
* Health Savings Account deduction
* Extra Standard Deduction for real estate taxes (Schedule L)
* Sales tax paid on the purchase of a new car
* Self-employed retirement contributions
* Jury duty repayments

FreeTaxUSA.com supports the following common types of federal credits:

* Child and Dependent Care credit (Form 2441)
* Child Tax credit
* Additional Child Tax credit (Form 8812)
* Education credits - American Opportunity, Hope, and Lifetime Learning credits (Form 8863)
* Refundable American Opportunity credit
* Earned Income credit (Schedule EIC)
* Making Work Pay credit (Schedule M)
* First-time home-buyer credit
* Move up/repeat home-buyer credit
* Retirement Savings Contribution credit (Form 8880)
* Excess Social Security credit
* Residential energy credits
* Hybrid Car credit
* Elderly credit (Schedule R)
* Foreign Tax credit (Form 1116)

Relieve Tax Season Stress before you file your taxes for free.

Play TaxSmack at my blog -> Tax Accountant Game or if you prefer stay here and utilize Free Tax Filing Online

FreeTaxUSA.com supports the following federal forms:

* Form 1040
* Form 1040EZ *
* Form 1040A *
* Form 1040X **
* Schedule A
* Schedule B
* Schedule C
* Schedule D
* Schedule D-1
* Schedule E
* Schedule EIC
* Schedule F
* Schedule L
* Schedule M
* Schedule R
* Schedule SE
* Form 982
* Form 1116
* Form 2106
* Form 2120
* Form 2441
* Form 3903
* Form 4137
* Form 4562
* Form 4684
* Form 4797
* Form 4868
* Form 4952
* Form 5329
* Form 5405
* Form 5695
* Form 6251
* Form 6781
* Form 8283
* Form 8379
* Form 8453
* Form 8582
* Form 8606
* Form 8812
* Form 8829
* Form 8862
* Form 8863
* Form 8880
* Form 8888
* Form 8889
* Form 8910
* Form 8917
* Form 9465

* Anyone who uses Form 1040EZ or Form 1040A can also use Form 1040. The FreeTaxUSA software gathers your information and allows you to and print and file a Form 1040.

** Form 1040X - Amended Return is only available if you prepared your original return using the FreeTaxUSA.

Supported State Tax Forms

Alabama

* Form 40
* Form 40X (amended)
* Form 40 Voucher
* Form 4952a
* Form AL8453OL
* Form NOL-85
* Form NOL-85A

* Schedules A
* Schedule B
* Schedule CR
* Schedule DC
* Schedule D
* Schedule E
* Schedule OC

Arizona

* Form 140
* Form 140X (amended)
* Schedule A
* Form 301
* Form 309
* Form 310

* Form 321
* Form 322
* Form 323
* Form 340
* Form AZ-8453
* Form AZ-140V

Arkansas

* AR1000
* AR1000A (amended)
* AR1000ADJ
* AR3
* AR4
* AR1800
* AR1075

* AR1000-CO
* AR1000D
* AR1000-OD
* AR1113
* AR1000DC
* AR1000V
* AR8453OL

California

* Form 540
* Form 540X (amended)
* Schedule CA
* Schedule D-1
* Schedule P
* Schedule S

* Form 3506
* Form 3805P
* Form 3805V
* Form 3885A
* Form 8453-OL
* Form 3582

Colorado

* Form 104
* Form 104 X (amended)
* 104AMT

* Form 104CR
* DR 8453
* DR 900

Connecticut

* Form CT-1040
* Form CT-1040-X
(amended)

* Form CT-1040V
* Form CT-6251
* Schedule CT-1040WH

Delaware

* DE 200-01
* DE-200-01-X
(amended)
* DE Schedules I

* DE Schedules II
* DE Schedules III
* DE 200V
* DE 8453OL

District of Columbia

* D-40
* Schedule S
* Schedule H
* Schedule U
* Schedule I

* Schedule N
* D-2440
* D-40P
* D-40E

Georgia

* Form 500
* Form 500 Schedule 1
* Form 500 Schedule 2
* Form IND-CR

* GA-8453 OL
* GA-525 TV
(tax voucher)
* GA-500X (amended)

Hawaii

* N-11
* Schedule CR
* N-158

* N-200V
* Schedule X

Idaho

* Form 40
* Form 39R

* Payment Voucher

Illinois

* Form IL-1040
* Schedule CR
* Schedule G
* Schedule ICR

* Schedule M
* IL-1040-V
* IL-1040-X (amended)

Indiana

* Schedule IN-529
* Schedule IN-529R
* Schedule CC-40
* Schedule CT-40
* Form IT-9
* Form IT-40
* Form IT-40X
(amended)
* Form IT-8453OL

* Form PFC
(post-filing coupon)
* Schedule 1
* Schedule 2
* Schedule 3
* Schedule 4
* Schedule 5
* Schedule 6
* Schedule 7
* Schedule IN-EIC

Iowa

* 1040
* 1040 Schedule A
* 1040 Schedule B
* 130

* 6251
* 8453 IND
* 1040-V
* 1040 X (amended)

Kansas

* K-40
* KS Schedule S
* K-40H

* K-40PT
* Schedule RNT
* K-40V

Kentucky

* Form 740
* Form 740X (amended)
* Schedule A
* Schedule M
* Schedule P

* Form 2210-K
* Form 5695-K
* Form 8863-K
* Form 8453-K
* Form 740-V

Louisiana

* Form IT-540SD
* Form R-6006
* Form R-10610
* Form R-10611

* Form R-3400
* Form 8453OL
* Form R-540V-SD
* Schedules E, F, and G

Maine

* Form 1040ME
* Form 1040XME (amended)
* Schedule 1 & 2

* Schedule A
* Schedule CP

Maryland

* Form 502
* Form 502CR
* Form 500DM

* Form EL101
* Form EL102
* Form 502X (amended)

Massachusetts

* Form 1
* Schedule HC
* Schedule HC-CS
* Schedule X & Y
* Schedule Z & RF
* Schedule DI
* Schedule B
* Schedule C
* Schedule CB

* Schedule D
* Schedule E
* Schedules E-1
* Schedules E-2
* Schedules E-3
* Schedule F
* Schedule INC
* Form PV
* Form CA-6 (amended)

Michigan

* MI-1040
* MI-1040X (amended)
* Schedule 1
* Schedule 2
* MI-1040CR
* MI-1040CR-2
* MI-1040CR-5
* MI-1040CR-7

* MI-1040-V
* 4642
* 4762
* MI-8453
* Schedule CR-5
* Schedule CT
* Schedule W

Minnesota

* M1
* M1W
* M1M
* M1WFC
* M1CD
* MN 2441
* M1ED
* M1MT
* M1R
* M1CR
* M1C

* M1LTI
* M1H
* ETP
* M60
* M1X (amended)
* M63 (amended)
* M1PR
* M1PR (worksheets)
* PV48 (amended)
* M1PRX (amended)

Mississippi

* Form 80-105
* Form 80-170
* Form 80-108
* Form 80-160
* Form 80-491

* Form 80-107
* Form 80-492
* Form MS8453OL
* Form 80-106
* Form 71-661

Missouri

* MO-1040
* MO-A
* MO-CR
* MO-CRP
* MO-PTS

* MO-1040V
* MO-8453
* MO-HEA
* MO-L

Nebraska

* Form 1040N
* Form 1040XN
(amended)
* Schedules I & II

* Form 6251
* Form 1040N-V
* Form 2441N
* Form 8453N

New Jersey

* NJ-1040 with TR-1040
* NJ-1040X (amended)
* NJ Schedules A, B, and C

* NJ-2450
* NJ-1040v

New Mexico

* PIT-1
* PIT-RC
* PIT-8453
* PIT-ADJ

* PIT-D
* PIT-S
* PIT-PV
* PIT-X (amended)

New York

* IT-2
* IT-112-R
* IT-201
* IT-201-ATT
* IT-201-V
* IT-209
* IT-213
* IT-213-ATT
* IT-214
* IT-215
* IT-216

* IT-241
* IT-245
* IT-249
* IT-255
* IT-272
* IT-360.1
(only NYC residents)
* IT-1099-R
* IT-1099-UI
* IT-201-X (amended)

North Carolina

* D400
* D400TC
* D400V

* D400X-WS (amended)
* D400V
(amended -- for D400X-WS only)

North Dakota

* Form ND-1
* Schedule ND-1CR
* Schedule ND-1SA
* Schedule ND-1TC

* Schedule ND-1FC
* Form ND-1V
* Schedule WTH

Ohio

* IT1040
* SD100
* IT40P
* SD40P

* IT1040X (amended)
* IT40P
(amended -- for IT1040X only)
* SD100X (amended)

Oklahoma

* Form 511
* Form 538-H
* From 538-S
* Form 511CR

* Form 511TX
* Form 511EF
* Form 511-V
* Form 511 X (amended)

Oregon

* Form 40
* Form EF
* Form 40-V

* Schedule OR-ASC
* Schedule WFC
* Oregon Amended Schedule

Pennsylvania

* PA-40
* PA-8453
* PA Schedule 19
* PA-40 Schedule AB
* PA-40 Schedule C
* PA-40 Schedule D
* PA-40 Schedule E
* PA-40 Schedule F

* PA-40 Schedule GL
* PA Schedule G-R
* PA-40 Schedule O
* PA-40 Schedule SP
* PA-40 Schedule J/T
* PA Schedule UE
* PA-40 W-2S
* PA-V

Rhode Island

* RI-1040
* RI Schedule I
* RI Other Schedules
(IV, OT, FT)
* RI Deduction Schedules
(A, B, C)
* RI Schedule CGW
* RI 1040 X (amended)

* RI Schedule D
* RI Schedule D1
* RI 6251
* RI Schedule CR
* RI 1040 MU
* RI 1040 H
* RI 1040V

South Carolina

* I-319
* I-330
* SC 1040
* SC-1040-X (amended)

* SC 1040-TC
* SC 1040-V
* SC 8453

Utah

* Form TC-40
* Form TC-40A
* Form TC-40C
* Form TC-40S

* Form TC-40W
* Form TC-8453
* Form TC-547

Virginia

* VA760CG
* Form 760-PMT
* VA-8453
* Schedule ADJ/CG

* Schedule CR
* Schedule FED
* Schedule INC/CG
* Schedule OSC/CG

West Virginia

* Form IT-140
* Form IT-140W
* Schedule M
* Schedule H & E
* Tax CR Schedule &
Schedule T

* Schedule PBGC
* Schedule SETC
* Schedule C
* 8453OL
* 140V

Wisconsin

* Form 1
* Schedule CR
* Schedule DC
* Schedule DI
* Schedule DM
* Schedule EB
* Schedule EC
* Schedule ED
* Schedule FC
* Schedule FP
* Schedule H
* Schedule HR
* Schedule I
* Schedule IE

* Schedule MI
* Schedule MP
* Schedule MS
* Schedule MT
* Schedule OS
* Schedule RS
* Schedule TC
* Schedule VC
* Schedule WD
* Schedule 2440W
* Form EIC-A
* Form EPV
* Form W-RA
* Form 1X (amended)

* Personal Exemption and Exemption For Dependents - Increased to $3,650 from $3,500 (up $150) from 2008, but is phased out at higher income levels.
* Standard Deduction - The great majority of American taxpayers take the standard deduction rather than itemizing deductions for expenditures such as mortgage interest, charitable contributions, and state & local taxes. The standard deduction increased to $11,400 from $10,900 (up $500) for married couples filing a joint tax return, increased to $5,700 from $5,450 (up $250) for singles and married individuals filing separately, and increased to $8,350 from $8,000 (up $350) for heads of household.
* Overall Tax Bracket Thresholds - Increased across the board for all tax filing statuses. This means that if your annual income did not increase since last year or if you did not receive an inflation based pay raise, you may likely pay a little less in taxes in 2009 than in 2008. As the IRS notes as an example on one of its press releases, in regards to a married couple filing a joint return, the taxable income threshold separating the 15 percent bracket from the 25 percent bracket is $67,900, up from $65,100 compared to tax year 2008.
* Earned Income Tax Credit - Increased to $5,028 from $4,824 (up $204) for low and moderate income workers and working families with two or more children. The income qualification limit to take the earned income tax credit (EITC) for joint return filers with two or more children also increased to $43,415 from $41,646 (up $1,769).
* Annual Gift Tax Exclusion Amount - Increased to $13,000 from $12,000 in 2008 (up $1,000). Often overlooked by people, the gift tax requires the gift giver to pay a special tax on the gift amount if it exceeds a certain amount per year. For 2009, that threshold will be bumped to $13,000.
* Social Security Contribution and Wage Benefit Base - Increased to $106,800 from $102,000 (up $4,800). This means that 2009 income sources over $106,8000 will not be subject to Social Security taxation. With the Social Security tax rate at 6.20%, this also means that the maximum a person will shoulder in Social Security taxes for 2009 is $6,622.
* Traditional and Roth IRA Contribution Limits - No change from 2008. Despite inflationary pressures that increased tax bracket rates across the boards, sadly, IRA and Roth IRA contribution limits will be staying the same - stuck at a crappy and paltry $5,000 per year for those under age 50, and $6,000 per year for those 50 or above.
* Roth IRA Contribution Limits (Income Threshold) - Increased to $166,000 from $159,000 (up $7,000) for married filing jointly couples, and increased to $105,000 from $101,000 (up $4,000) for singles and others.
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If you did not qualify for the stimulus payment

On 2008 Federal tax returns there will be a section where the payment will be claimed as a credit. Taxpayers who did not qualify last year, may qualify for a rebate credit when they file the 2008 tax return.

If you did receive the stimulus payment

There will be no effect to your 2008 tax return if you received the maximum allowed rebate. If you happened to receive more than the allowed amount when filing your 2008 tax return, you will not be affected. However, if you received less than the allowed amount when you file 2008 taxes, you will receive the difference back in the form of a tax credit.

Even if you did not make enough to file a tax return or if you are not legally required to file a tax return, you must file a federal tax return with the IRS. This mostly refers to retirees, low wage workers, and disabled veterans.

Over 130 million American homes will receive payments as part of President Bush's program to jumpstart the economy.

To be eligible you need to have:

1. A valid Social Security number
2. $3,000 of income in 2007
3. A federal tax return filed by Midnight, April 15, 2008

Eligible Americans will receive up to $600 a person or $1200 a married couple. Persons with children receive $300 per child under the age of 17.

You definitely will not get a stimulus payment if any of the following apply to you:

* You don't file a 2007 tax return.
* Your net income tax liability is zero and your qualifying income is less than $3,000. To determine your qualifying income, add together your wages, net self-employment income, nontaxable combat pay, Social Security benefits, certain Railroad Retirement benefits and certain veterans' payments.
* You can be claimed as a dependent on someone else's return. For example, this would include a child or student who can be claimed on a parent's return.
* You do not have a valid Social Security Number.
* You are a nonresident alien.
* You file Form 1040NR or Form 1040NR-EZ, Form 1040PR or Form 1040SS for 2007.

The following items are NOT supported with FreeTaxUSA.com:

* Foreign employment income (Form 2555)
* Foreign mailing address
* Household employment taxes (Schedule H)
* Nonresident alien returns (Form 1040NR)
* Adoption credit (Form 8839)
* Deceased taxpayer (Form 1310)
* General business credits (Form 3800)
* Farm rental (Form 4835)
* At-risk limitations (Form 6198)
* Installment sales (Form 6252)
* Tax for children under age 18 with investment income (Form 8615)
* Prior-year minimum tax credit (Form 8801)
* Qualified electric vehicle credit (Form 8834)
* Archer MSAs (Form 8853)
* Health coverage tax credit (Form 8885 and Form 1099-H)

1: Qualified employee plan distributions because of separation from service in or after the year you reach age 55.
2: Receiving the distribution as part of a series of substantially equal payments made every year over your life expectancy.
3: Receiving the distributions due to total and permanent disability.
4: The distributions were due to death.
5: Distributions for medical expenses if your unreimbursed medical expenses were greater than 7.5% of Adjusted Gross Income (AGI). Only enter medical expenses in excess of 7.5% of AGI.
6: Distributions were required by a qualified domestic relations order (QDRO). A QDRO is usually a distribution to an ex-spouse required by a divorce agreement.
7: IRA distributions made to unemployed individuals used to pay for health insurance premiums.
8: IRA distributions made for higher education expenses.
9: IRA distributions made to purchase a first home, up to $10,000.
10: The distributions were because the IRS levied your qualified retirement plan.
11: Qualified distributions to reservists while serving on active duty for at least 180 days.

The first time I used them I was not sure either, but let me tell you I have used them for the last 5 years with out ever a problem. Many people think that if it is free it must be a scam or not real. Actually the federal government provides free online tax filing as well, along with other tax providers, so it is quite common and not something you should worry about.

Go ahead a do you taxes with FreeTaxUSA today and I'm sure you'll be very pleased by how easy and fast the whole process is.. What are you waiting for?